R Radhakrishnan Nair (Senior Geologist) 11 June 2011
Could some one clarify the difference between a Partnership firm and proprietorship firm? When a firm is asked to disclose the nationality of all partners, they informed that it was a proprietorship firm and hence only the nationality of Managing partner alone will be disclosed
pervez (adviser) 11 June 2011
Dear M. Nair,
In nutshell, a Partnership firm governs by the provisions of Indian Partnership Act while there is no governing law for proprietorship [ concern] firm. It is misnomer that some time we use the word ' firm' for both the entities. Actually for proprietorship the word 'concern' is used in legal terminology intsead of the word 'firm'.
There has to be atleast two partners in the Partnership firm. A proprietorship concern is run by one man only with his business name Like M/s Ramchet & Sons etc. proprietor Mr. Ramchet. Hope this will satisfy yr query
regards
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